The Sultan Center Group announced its financial results for the year 2021 and its expansion plans for the next five years in Kuwait and the region. Not repeated. The group stated in a press statement that earnings before interest, taxes, depreciation and amortization amounted to about 18.2 million dinars, while earnings per share amounted to 131.44 fils per share, an increase of 3316%.
She said that current liabilities amounted to about 94.1 million dinars as on December 31, 2021, an improvement of 30%, while total liabilities amounted to about 239.8 million dinars, an improvement of 5%, and total assets amounted to 315.2 million dinars, an improvement of 6.5%, and total property rights reached to 75.7 million dinars, an increase of 67%.
Extraordinary profits
In this context, the CEO of the Sultan Center Foodstuff Company, Khadija Obla, said: “The company’s exceptional profits for this year include non-recurring investment profits, and when these profits are excluded, our operational results are in line with the management’s expectations for this year, taking into account the high inflation rates, The rise in commodity prices, and logistical costs that began to appear clearly in early 2021. Compared to 2019, the last normal working year before the pandemic, our operational results have improved thanks to our internal initiatives to increase operational efficiency, our continuous offerings and our continuous investment in enhancing the customer experience in all Our branches. She explained that the Sultan Center announced its new strategic plan for expansion, which includes multiple projects that are currently being implemented to launch them with different concepts and concepts that provide a modern shopping experience that suits the lifestyle of consumers in Kuwait and the region.
The new strategy
Commenting on the new strategy, Obla said: “In 2017, we launched a fundamental transformation plan that resulted in a robust world-class governance structure, a more successful business model, stronger supplier relationships and a multi-channel approach to business. Today, we are pleased to announce the launch of a new, well-studied strategic plan for The Sultan Center based on achieving the highest possible return for the invested capital and achieving the highest returns for shareholders. We have started implementing our expansion plan by developing our offers in branches and on our websites inside and outside Kuwait. We have also started work on projects that will add more than 20,000 square meters of commercial space to the Sultan Center network in its three categories. In addition to providing various modern products and offers for consumers to choose from. We will continue to serve our customers who have accompanied us for decades, and we look forward to serving the new generation of customers and inviting them to join us in our journey and create with us the most beautiful memories. On the regional level, we will launch new branches of the Sultan Center with a new concept to enhance our name in the region’s markets.”
She added: “The cornerstone of our strategic plan is our unwavering commitment to excellence in operational efficiency and providing a unique experience to our customers through our offerings and products that meet their changing needs and suit their lifestyle. We have already started implementing this strategy by launching more than 25 strategic projects in Kuwait and the region. These initiatives include renovation projects and new branch opening projects to provide an advanced shopping experience in all our malls (Main Centres, Markets and Express Shopping Malls). In addition to opening branches in new demographic areas in Kuwait and expanding the network of Sultan Express stores after its recent success. We look forward to providing more information to our shareholders in the coming phases of this year.”
The fundamental transformation plan of the “Sultan Center”
The fundamental transformation plan of the Sultan Center Group was launched in 2017, with the aim of focusing on its core operations by exiting from non-core activities and investments, developing its performance, and focusing on improving the operations of central markets. The plan had three main goals:
1- The exit from non-core investments and activities was successfully achieved in 2019.
2- Balance sheet strengthening and debt restructuring was successfully achieved in the third quarter of 2021.
3- Business development in the retail sector, which is being worked on according to the specified date.